• 3 minutes Electric cars may make driving too expensive for middle classes, warns Vauxhall chief
  • 6 minutes Natural gas mobility for heavy duty trucks
  • 12 minutes Colonial pipeline hack
  • 13 hours U.S. Presidential Elections Status - Electoral Votes
  • 29 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 hours Texas Power Outage Danger Until June 18th. Texans told to conserve energy!
  • 10 hours Succession Planning in Human Resources for Vaccinated Individuals in the Oil & Gas Industry
  • 1 day Federal Judge Says Biden Probably Wrong for Halting Drilling on Federal Land
  • 2 days And now, hybrid electric locomotives...
Editorial Dept

Editorial Dept

More Info

Premium Content

Is An Oil Price Recovery In The Making?

U.S. West Texas Intermediate crude oil futures are trading lower for the week, but a rally on Friday has helped the market erase most of its earlier losses. The highlight of the week has been the heightened volatility associated with an escalation of tensions between the United States and China.

This current elevated tensions actually started on August 1 when President Trump announced new tariffs against China. Volatility rose on this news, but spiked even higher when China retaliated by dropping its currency below the psychological 7 yuan to the dollar level and canceling all agricultural deals it had with the United States.

Concerns over a slowing economy then prompted the Reserve Bank of New Zealand to shock the markets with a 50-basis point rate cut in its official cash rate. This drove global bond yields sharply lower, while triggering fears over a global recession.

Worries about a recession increased the chances of lower crude oil demand, driving prices sharply lower. That steep break pushed prices to multi-month lows, but since that initial bearish reaction, the market has recovered more than half its losses on reports that OPEC would cut production to support prices.

Barring any further bearish developments between the U.S. and China, the news of an OPEC production cut could provide short-term support.

U.S. Energy Information Administration Weekly Inventories Report

On Wednesday, the U.S. Energy Information Administration (EIA) reported…





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News